THE only council on Teesside with a full election looming this year looks certain to set the lowest tax increase in the area.

Stockton Borough Council's cabinet has agreed to recommend an increase of 3.9 per cent, a percentage point below the national average and every other Teesside authority.

The marginal council is the only one on Teesside facing a full election this year, although there will be a mayoral election in Hartlepool.

Redcar and Cleveland Borough Council is recommending a 4.9 per cent increase; Hartlepool Borough Council has already ratified a 4.9 per cent jump and Middlesbrough Council's executive has agreed a 4.8 per cent rise. Cleveland Police is expected to levy a five per cent increase on its share of council tax bills across all of Teesside.

Stockton council, which will be holding elections in May, had a meeting of its cabinet on Thursday.

The cabinet members considered a £216m budget for the coming financial year.

For Band A homes, which account for nearly half of all homes in the borough, that represents a rise of £25.33.

The Labour-run authority received an extra £5m from the Government this year for education and an extra £4.9m for social services. The tax increase has yet to be ratified by the full council.

Councillor Bob Gibson, the council leader, said: "This budget is designed to continue the excellent management that Stockton council has achieved in recent years."

Hartlepool has a budget of £113m and was anticipating a six per cent increase in council tax. However, finance officers had overlooked the fact that the authority was no longer responsible for funding magistrates' courts, which has led to a saving of £180,000.

Middlesbrough Council has a £174m budget and plans to invest an extra £1.7m into education in the coming year.

Redcar and Cleveland's authority will discuss its latest proposal at a cabinet meeting on Thursday, but the proposed 4.9 per cent increase is expected to be agreed. It has Teesside's biggest council budget of £300m.